Amendments to Reserve Requirements for Deposits Made through Payment Service Providers Offering Payment Accounts

On September 22, 2022, the Argentine Central Bank (BCRA) issued Communique “A” 7611, introducing new measures applying to the legal banking reserve that financial institutions must maintain regarding the deposits of Payment Service Providers offering Payment Accounts (PSPCPs) for the funds of their clients. This decision comes after Communique “A” 7462, published last December, established the obligation for financial institutions to embed funds at a rate of 100%.

In the new communique, the BCRA maintains both this requirement for financial institutions and the 100% rate, but it establishes that the requirement may be integrated in ARS -of the period and daily- with “National Treasury Bonds in ARS maturing on May 23, 2027” for up to 45% of the total sum.

Consequently, from now on, 55% of the embedded funds must remain immobilized, but the other 45% may be voluntarily integrated with the treasury bonds.

Although this measure does not eliminate the requirement the BCRA established for financial institutions -which directly affected the FinTech business of offering payment accounts- it would tend to reduce its impact implying, at the same time, an increase in the demand for these bonds.